ADMINISTRATIVE REPORT
MEETING DATE: March 11, 2026 AGENDA CATEGORY: Consent - Public Hearings TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: February 24, 2026
SUBJECT: Public hearing to consider Tax Equity and Fiscal Responsibility Act Hearing on Behalf of the Housing Authority of the County of Kern (Ward 2)
1. Conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986 to receive comments relating to the plan of finance for the issuance by the Housing Authority of Kern of Multifamily Housing Revenue Bonds in an amount not to exceed $7,000,000 of the Authority’s Revenue Bonds (Bonds) for the purpose of financing rental housing projects.
2. Adopt Resolution approving the plan of finance for the issuance by the Housing Authority of Kern of Multifamily Housing Revenue Bonds in an amount not to exceed $7,000,000 for the construction of a 36-unit affordable housing complex located at 530 4th Street in Bakersfield California and certain other matters relating thereto.
3. Indemnification Agreement between the City of Bakersfield (City) and the Housing Authority of the County of Kern.
RECOMMENDATION:
Staff recommends Council conduct a public hearing, adopt the resolution and approve the Indemnification Agreement
BACKGROUND:
The City of Bakersfield received a request from the Housing Authority of the County of Kern (Housing Authority) to conduct a public hearing, as required by the Internal Revenue Code, in order to issue, pursuant to a plan of finance, of one or more series of its tax -exempt bonds, notes, or other evidence of indebtedness in an a mount not to exceed $ 7,000,0000 (the “Bonds”) for the benefit of the Borrower pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State (commencing with Section 6500) (the “Act”), the proceeds of which will be used to make a loan t o a to -be-formed limited partnership with Bakersfield Senior LP to construct 36 affordable housing units within the Bakersfield Senior Affordable Housing development (the “Project”) located at 530 4 th Street. This Project is targeted to low-income seniors earning up to 60% of the Kern County Median Income (AMI).
The Bonds will be tax-exempt private activity bonds for the purposes of the Internal Revenue Code and, as such, require the approval of the elected body of the governmental entity having jurisdiction over the location where the project to be financed is located. The City will not be under any obligation to repay the Bonds.
In order for the Housing Authority to issue the Bonds, the City must conduct a public hearing allowing members of the public t o comment on the proposed Project, and approve the Housing Authority’s issuance of the Bonds. Although the Housing Authority (not the City) will be the issuer of the Bonds for the Project, the financing cannot proceed without the City approving the issuance of the Bonds.
The Housing Authority will issue the Bonds for the benefit of the Project. No financial obligations are placed on the City for the costs of the Project or the repayment of the Bonds.
FISCAL IMPACT:
No fiscal impact on the City of Bakersfield. Bonds are payable solely out of the revenues derived by the Borrower (Housing Authority) from the Project.
COUNCIL GOAL:
Safety and Resilience
ATTACHMENTS:
1. Resolution
2. Indemnification Agreement